HTV bill shelved; attorney general being consulted

Jeremy AlfordCapitol Correspondent

Published: Saturday, May 26, 2012 at 8:24 p.m.

Last Modified: Saturday, May 26, 2012 at 8:24 p.m.

BATON ROUGE — The long and winding regulatory campaign pitting the forces of Houma’s television station against a publicly traded company whose market cap is in the tens of billions of dollars appeared to be approaching a conclusion this past Tuesday on the floor of the state Senate.

That’s where and when legislation backed by Martin Folse, owner of HTV-Channel 10, and opposed by lobbyists for DirecTV was scheduled to be heard. It was just a couple steps away from final passage after a long round of pubic debates filled with improbable twists and turns.

But the bill never came up for debate. It was shelved by lawmakers who had just been told that Attorney General Buddy Caldwell might be able to intervene in a tangible way. So, just as Folse’s legal journey approached a potential end, a new turn sprouted.

From down the bayou to up a ways in the Capital City and further off on Capitol Hill, Folse told lawmakers this session that he has taken his case many places over the past few years. Initially, he was aided only by friends and family members who shared his belief that DirecTV sales representatives were being “dishonest” with consumers in south Louisiana.

But Folse wasn’t alone for long. While he will voluntarily compare his position to that of the biblical David facing off against DirecTV’s Goliath, Folse’s Class-A television station, in a market serving a potential 400,000 viewers, have afforded him a unique opportunity to build strong political relationships.

Gov. Bobby Jindal, who Folse has made sizable contributions to, wrote a letter on the station’s behalf asking the federal government to act on allegations that consumers were being duped into signing two-year contracts. The way Folse and others tell it, consumers were — and possibly still are — being incorrectly told that HTV is a part of DirecTV’s lineup.

State Rep. Joe Harrison, R-Napoleonville, who has also received donations from Folse, has sponsored bills and resolutions seeking to address the situation. Harrison’s latest push, House Bill 1207, would have forced satellite TV service providers to include in their contracts what channels are being offered at the point of sale.

FROM THE BEGINNING

But that’s not how the bill initially started. Earlier this session, Harrison and Folse originally asked lawmakers to pass a bill to require “providers to offer local broadcast channel access through their networks.” When that version was rejected, Folse said it wasn’t a major blow to him.

“I don’t care if they carry us or not,” he said. “I just don’t want them misleading the public anymore.”

Harrison and Folse returned with language to add a new provision to the state’s Unfair Trade Practices Act. That approach was criticized and retooled by the Senate Committee on Commerce, Consumer Protection and International Affairs, resulting in the proposed contract changes that were pending action on the Senate floor last week.

That Senate committee hearing, however, set into motion the new options Folse is faced with. During the hearing, Damon Stewart, vice president of state government affairs for DirecTV, testified that his company had searched its customer service system to verify the complaints by consumers that were being alleged, but it unearthed only a few. Harrison had testified that “hundreds” had filed complaints with his district office in recent years.

“We’re not seeing this groundswell,” Stewart told the committee, adding that contract cancellations don’t bear out the problem, either.

Harrison said in an interview Friday that Stewart may have withheld information or not been truthful. He points to a 2010 settlement Caldwell oversaw with DirecTV that included violations of Louisiana’s unfair trade practices and consumer protection law. Stewart did not respond to a phone message seeking comment last week.

“What got me the most,” Folse said, “is that DirecTV sat in front of that committee and didn’t mention a word about it. How much in taxpayer money could have been saved through the hearings and everything else had they just been truthful?”

A NEW WRINKLE

The consent decree found that DirecTV had mislead consumers and the satellite provider was ordered, from that point on, to “clearly disclose all material terms.” Laura Gerdes Colligan, public information officer for the Louisiana Department of Justice, said DirecTV agreed to pay restitution to consumers and to alter its business practices.

The judgment also gave Caldwell’s office the authority to monitor DirecTV and subject it to penalties of up to $5,000 per offense. Colligan said the Attorney General’s Office has been doing just that over the past two years and that it’s aware of the issues being raised regarding HTV.

In the meantime, Colligan asked that any Louisiana consumers who “feel they may have been a victim of deceptive or unfair business practices by DirecTV” to notify the Attorney General’s Office by calling its consumer protection hotline at 1-800-351-4889 or by filing a complaint online at www.agbuddycaldwell.com.

As for Folse, he has options. Senate Commerce Chairman Danny Martiny, R-Metairie, who criticized the legislation as unnecessary, suggested that Folse might have a “class- action lawsuit” on his hands, considering the number of people presumably upset about their contracts.

“There are a whole bunch of lawyers I know who would love to sue somebody for this,” Martiny said during the committee hearing.

Harrison said Terrebonne Parish District Attorney Joe Waitz “should be able to take care of the local station,” especially considering the consent decree. In an interview, Waitz said he would discuss the issue with the Attorney General’s Office and is looking into it further.

Colligan said the wheels are already turning on the state level. For Folse, it could equate to answers, one way or the other, to questions he has been asking for many months.

“One way our office monitors DirecTV’s compliance with the consent judgment is through our consumer complaint process,” Colligan said. “We have received additional complaints regarding DirecTV’s business practices and are looking into these issues for consumer protection law violations and for possible violations regarding DirecTV’s compliance with the terms of the agreement.”

<p>BATON ROUGE — The long and winding regulatory campaign pitting the forces of Houma's television station against a publicly traded company whose market cap is in the tens of billions of dollars appeared to be approaching a conclusion this past Tuesday on the floor of the state Senate. </p><p>That's where and when legislation backed by Martin Folse, owner of HTV-Channel 10, and opposed by lobbyists for DirecTV was scheduled to be heard. It was just a couple steps away from final passage after a long round of pubic debates filled with improbable twists and turns.</p><p>But the bill never came up for debate. It was shelved by lawmakers who had just been told that Attorney General Buddy Caldwell might be able to intervene in a tangible way. So, just as Folse's legal journey approached a potential end, a new turn sprouted.</p><p>From down the bayou to up a ways in the Capital City and further off on Capitol Hill, Folse told lawmakers this session that he has taken his case many places over the past few years. Initially, he was aided only by friends and family members who shared his belief that DirecTV sales representatives were being “dishonest” with consumers in south Louisiana. </p><p>But Folse wasn't alone for long. While he will voluntarily compare his position to that of the biblical David facing off against DirecTV's Goliath, Folse's Class-A television station, in a market serving a potential 400,000 viewers, have afforded him a unique opportunity to build strong political relationships. </p><p>Gov. Bobby Jindal, who Folse has made sizable contributions to, wrote a letter on the station's behalf asking the federal government to act on allegations that consumers were being duped into signing two-year contracts. The way Folse and others tell it, consumers were — and possibly still are — being incorrectly told that HTV is a part of DirecTV's lineup.</p><p>State Rep. Joe Harrison, R-Napoleonville, who has also received donations from Folse, has sponsored bills and resolutions seeking to address the situation. Harrison's latest push, House Bill 1207, would have forced satellite TV service providers to include in their contracts what channels are being offered at the point of sale.</p><h3>FROM THE BEGINNING</h3>
<p>But that's not how the bill initially started. Earlier this session, Harrison and Folse originally asked lawmakers to pass a bill to require “providers to offer local broadcast channel access through their networks.” When that version was rejected, Folse said it wasn't a major blow to him. </p><p>“I don't care if they carry us or not,” he said. “I just don't want them misleading the public anymore.” </p><p>Harrison and Folse returned with language to add a new provision to the state's Unfair Trade Practices Act. That approach was criticized and retooled by the Senate Committee on Commerce, Consumer Protection and International Affairs, resulting in the proposed contract changes that were pending action on the Senate floor last week. </p><p>That Senate committee hearing, however, set into motion the new options Folse is faced with. During the hearing, Damon Stewart, vice president of state government affairs for DirecTV, testified that his company had searched its customer service system to verify the complaints by consumers that were being alleged, but it unearthed only a few. Harrison had testified that “hundreds” had filed complaints with his district office in recent years. </p><p>“We're not seeing this groundswell,” Stewart told the committee, adding that contract cancellations don't bear out the problem, either.</p><p>Harrison said in an interview Friday that Stewart may have withheld information or not been truthful. He points to a 2010 settlement Caldwell oversaw with DirecTV that included violations of Louisiana's unfair trade practices and consumer protection law. Stewart did not respond to a phone message seeking comment last week.</p><p>“What got me the most,” Folse said, “is that DirecTV sat in front of that committee and didn't mention a word about it. How much in taxpayer money could have been saved through the hearings and everything else had they just been truthful?”</p><h3>A NEW WRINKLE</h3>
<p>The consent decree found that DirecTV had mislead consumers and the satellite provider was ordered, from that point on, to “clearly disclose all material terms.” Laura Gerdes Colligan, public information officer for the Louisiana Department of Justice, said DirecTV agreed to pay restitution to consumers and to alter its business practices.</p><p>The judgment also gave Caldwell's office the authority to monitor DirecTV and subject it to penalties of up to $5,000 per offense. Colligan said the Attorney General's Office has been doing just that over the past two years and that it's aware of the issues being raised regarding HTV.</p><p>In the meantime, Colligan asked that any Louisiana consumers who “feel they may have been a victim of deceptive or unfair business practices by DirecTV” to notify the Attorney General's Office by calling its consumer protection hotline at 1-800-351-4889 or by filing a complaint online at www.agbuddycaldwell.com.</p><p>As for Folse, he has options. Senate Commerce Chairman Danny Martiny, R-Metairie, who criticized the legislation as unnecessary, suggested that Folse might have a “class- action lawsuit” on his hands, considering the number of people presumably upset about their contracts.</p><p>“There are a whole bunch of lawyers I know who would love to sue somebody for this,” Martiny said during the committee hearing.</p><p>Harrison said Terrebonne Parish District Attorney Joe Waitz “should be able to take care of the local station,” especially considering the consent decree. In an interview, Waitz said he would discuss the issue with the Attorney General's Office and is looking into it further. </p><p>Colligan said the wheels are already turning on the state level. For Folse, it could equate to answers, one way or the other, to questions he has been asking for many months.</p><p>“One way our office monitors DirecTV's compliance with the consent judgment is through our consumer complaint process,” Colligan said. “We have received additional complaints regarding DirecTV's business practices and are looking into these issues for consumer protection law violations and for possible violations regarding DirecTV's compliance with the terms of the agreement.”</p><p>Capitol Correspondent Jeremy Alford can be reached at </p><p>jeremy@jeremyalford.com.</p>